Loan and Equity Help

Have your college loans gotten the best of you? Maybe its time to consider loan consolidation.

Sallie Mae college loan consolidation is a great option for many new graduates to pay off their federal loans and maybe even end up with a few extra bucks in their pockets at the end of the month. With this type of loan, Sallie Mae combines all of your existing student loans into a single loan, most often with a much lower interest rate (as low as 4.75%). If you’ve just graduated college I’m not going to insult you by explaining the tremendous difference a few percentage points of interest can make in your monthly payment. In terms most of you can understand, it might mean the difference between mac & cheese or an actual meal.

Interest rates on federal student loans can change annually. Changes in interest rate also affect the monthly payment. With a Sallie Mae college loan consolidation, the interest rate is fixed for the duration of the loan. This will leave you with a secure feeling. Sallie Mae provides the opportunity to increase the length of the loan, which results in lower monthly payments over a longer period of time. While this may seem to be the best option, especially just entering the job market; remember that a longer loan period means you’re paying more in interest over a long time span.

Sallie Mae loan applications are free and there are no fees or credit checks required. Once the Sallie Mae college loan consolidation process has begun, existing loans balances are paid in full. This leads to a better credit rating.

It isn’t uncommon for people to get in a bind sometimes and make a payment late at times, or not at all. If you’ve exhausted your deferment and forbearance options, it may be time to consider consolidation to give you a clean slate. A Sallie Mae loan may be the fresh start you need. If you see that your situation is getting to the point where you may default on one or more loans, applying for the Sallie Mae college loan consolidation program now can save you a great deal of trouble later.

Four options for repayment are available under the Sallie Mae program: Standard, Extended, Graduated, and Income Contingent.

Standard Repayment Plans - offer fixed monthly payment amounts, loan term is limited to a maximum of 10 years

Extended Repayment Plans - offer fixed monthly payments, loan terms range between 12 and 30 years and depend on the total amount of the loan approved, lower monthly payments are a benefit due to the extended payment schedule

The Graduated Repayment Plan * Loan term is between 12 and 30 years * Monthly payments increase every two years

The Income Contingent Repayment Plan - calculated based on a number of factors including your annual gross income, family size and total amount of your consolidated loan and loan term is 25 years